I wouldn't even consider doing it. EVER. I put in too much work collecting DIYs, art, furniture pieces, materials and IGB, plus I put in so much effort into making my island look nice. Sure it wasn't planned and it was all improvised, but that's how I like it. Just a lot of ideas in one. My island has no specific theme, even though I named it after one of the more central locations in MOTHER, Magicant. I could have done something fancy and predicable, but fate had other plans.
It's true that one easily becomes attached to their island on account of all the effort, time and devotion sunk into exterior decorating (interior, not so much, as the rooms are so tiny, what does it matter) but it's easy to reset towns in other games such as PG and WW, because that town doesn't really feel like it belongs to you. You're just living their with some animal pals. NH, on the other hand, has you building and customizing an ENTIRE island, from weeds and awkward rivers to seamless streams, lofty waterfalls, perfect paths and furniture aplenty.
To me, resetting at this point is just not worth it and would be no fun at all. Just a huge grind-fest to get everything back all over again, and for what? A peninsula on the east side instead? One river mouth to the west and one to the south this time? A longer dock? I'll have you know my dock is just the right size and length, thank you very much (whatever happened to that old thread on dock size btw?

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I'm not trying to say that resetting is wrong by any means. It's just...why go through all that torment again? To each their own, as they say.